Markit Economics released its final manufacturing purchasing managers' index (PMI) for Italy on Tuesday. Italy's manufacturing purchasing managers' index (PMI) plunged to 53.8 in August from 55.3 in July. It was the lowest level since August 2014.

The output and new orders rose in June, while the employment was up, smallest increase since January.

Input prices declined for first time in six months due to lower material costs.

"August's PMI data showed a further expansion of production in Italy's manufacturing sector, led by another strong performance among capital goods producers. However, data pointed to some loss of growth momentum, with output, new orders, employment and purchasing activity all rising at slower rates than in July," Markit economist Phil Smith said.